There have been misconception that giving tax incentives to the rich help
\nincentivise job creation, because the capitalists are perceived to be job
\ncreators. The truth is, they do not.\u00a0 Ordinary consumer is more of a job
\ncreator than a capitalist.<\/p>\n
Business people taking credit for creating jobs is highly unfair. Business
\npeople hire people as their last resort, as they only hire to keep pace
\nwith the consumer demand. The Nigerian Personal Income Tax act is unfair
\nfor allowing fixed tax rate for resident companies, while varying that of
\npersonal income tax rates.<\/p>\n
The rigidity of the resident company tax rate allows for unnecessary
\novergrowing of few companies and making many more to close down. Small,
\nmedium and big companies pay 30% of their profits as tax irrespective of
\ntheir return and size.<\/p>\n
Consequently, rich are getting richer and more citizens that are of middle
\nclass were relegated. Statistics have shown that, we have more unemployment
\nas number of millionaires increases over time. If number of millionaires
\ncan create jobs, we will not have the level of unemployment we are having
\nnow in the country, which is of a record high (23.9%), this without
\nincluding the estimated 30% more that are under-employed.<\/p>\n
The individual consumer needs to be incentivised. If the minimum wage is to
\nkeep pace with the inflation rate, the minimum wage would have been
\nanything above N25, 000 by now just within five years since it was reviewed
\nto N18, 000. Jobs are consequence of eco-systemic feedback loop between
\ncustomers and businesses. If the middle class thrive and do well, both the
\ncapitalist and the poor benefit.<\/p>\n
Therefore, let the rich be taxed more, so that we can create more middle
\nclass people, who consumes more and then create jobs by virtue of their
\nconsumptions. Company tax system should be proportionate to the income
\nlevel. Business with profit less than N80 million should be taxed at 25%,
\nbusiness profits above N80 million but not up to N500 million should be
\ntaxed at 30%, and any profit margin above N500 million should be taxed at
\n35%.<\/p>\n
This should not include companies operating in the petroleum sector. There
\nshould not be credit breaks for big companies, unless for special
\ncircumstances. However, tax breaks can be allowed for small and medium
\ncompanies.\u00a0 Minimum wage should be upgraded to N25,000.<\/p>\n
With the pending austerity measures, government expenditure (recurrent)
\nmust be reduced by at least 10% every year for four years, the tax rates
\nshould be increased and compliance enforced. Compliance will not be a big
\ndeal because people now have trust and confidence on the government.<\/p>\n
However, there should be immediate reflection of benefits derived from tax
\npayments. This should be showcased in areas like improving access to
\nelectricity, increasing the minimum wage, improving access to quality and
\naffordable health care and educational system.<\/p>\n
All leakages of government revenue resulting from corruption should be
\nblocked and channelled that to power sector at least in the short term.<\/p>\n
Thank you<\/p>\n
Ahmed Adamu (PhD) is the President, Commonwealth Youth Council<\/p>\n","protected":false},"excerpt":{"rendered":"
There have been misconception that giving tax incentives to the rich help incentivise job creation, because the capitalists are perceived to be job creators. The truth is, they do not.\u00a0…<\/p>\n","protected":false},"author":1,"featured_media":38824,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-38823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-opinions"],"yoast_head":"\n